*Table includes companies with minimum market
capitalizations of $200 million and three month trading
volumes of at least 100,000 shares. All percentage returns
are listed as of 11:30AM Eastern Standard Time . Click on
ticker symbols for up-to-the-minute price quotes and
percentage gain data.

Tesla is a Magnet for Investors

It's been quite a week for executives at
Tesla Motors (Nasdaq:
TSLA
)
, which sells high-performance electric cars. When the week began,
it was unclear if the choppy stock market action would cause its
imminent
initial public offering (
IPO
)
to land with a thud. But by Monday afternoon, its bankers lined up
ample demand for the new shares, enabling a deal to be priced at
$17, above the $14 to $16 planned range. Demand was so strong that
shares soared, closing the day at $23.89 -- a +40% gain from the
IPO
price, even as the broader market was tanking. And on Wednesday
morning, shares are up another +23%. The company is now valued at
more than $2 billion. As a point of reference, the company has sold
a little more than 1,000 cars after two years of sales efforts.

So why are shares proving so popular at a time when established
auto makers like
Ford (NYSE:
F
)
and advanced battery makers such as
A123 Systems (Nasdaq:
AONE
)
are trading so poorly? Perhaps because the company has considerable
buzz among die-hard car fans, who are enticed by the chance to buy
the first auto-related
IPO
in more than 50 years.

But there's plenty of reason for concern. For starters, consumers
will have many more electric car models to choose from during the
next few years, all of which should be more inexpensive than
Tesla's current and future models. In addition, it's unclear if
demand for Tesla's cars can be sustained after early adopters
snapped up cars sold in the first few years. Many auto designs see
their sales peak in their first few years on the market. Lastly,
Tesla has never made money and is unlikely to turn a profit any
time soon. So it is likely to burn through that IPO money in less
than two years, requiring yet more capital.

Action to Take -->
Tesla's valuation has become completely disconnected from reality,
as shares are being pushed higher by traders and not investors.
Once momentum investors see the trade start to fade, shares should
quickly feel gravity's pull and work back towards that IPO price.
If you want to play the burgeoning electric car trend, you may want
to look at A123Systems or
Ener1 (NYSE:
HEV
)
, a pair of advanced battery makers that are now trading on the
cheap.

------------------------------------

Ford Bounces Back

As noted above, shares of
Ford (NYSE:
F
)
had fallen from grace recently, dropping below $10 for the first
time this year. A cooling economy in Europe, where Ford derives a
big chunk of sales, was the primary headwind, although recent U.S.
new car sales data also appear to be weakening. I remain bullish on
Ford, despite the recent slump, spelling my thoughts out here.

Shares are seeing a nice +5% gain on Wednesday after Ford announced
that it is retiring about $4 million worth of obligations to its
employees' health care funds and credit arm. That's a bullish sign,
as the auto maker has confidence that it need not hoard all of its
cash for the next rainy day. In recent days, rumors had circulated
that Ford would issue fresh stock to cover the health fund and
credit division obligations, which pushed shares lower on dilution
fears. But shares were punished so much that it made less sense to
issue shares. (The lower the share price, the more shares it would
have needed to offer).

Ford has done a solid job during the past few years of managing its
balance sheet
, but investors have surely felt the pain of dilution. Shares
outstanding have risen from around two billion at the end of 2007
to a recent 4.6 billion. Investors look forward to the day when
Ford can start buying back stock, which is at least several years
away.

Action to Take -->
Ford continues to make the best of a bad situation. By paying down
debt, the company will save nearly $500 million in annual interest
expense. At some point soon, Ford will have completed all of its
financial maneuverings, and the era of ever-rising dilution will
end. At that time, investors will start to focus on Ford's earnings
potential. After break-even results last year, Ford should earn at
least $1.25 a share this year and at least $1.50 a share next year,
at a time when the global economy is still slumping. When the
United States and European economies are back on their feet, Ford
could earn more than $3 a share. Not bad for a $10 stock.

------------------------------------

Tata Sees Better Pricing Ahead

Rounding out today's winners is yet another auto maker,
Tata Motors (NYSE:
TTM
)
, which is the largest auto maker in the world's fastest-growing
auto market -- India. Tata sells everything from motorcycles to the
Nano, the world's cheapest car, to expensive lines such as Jaguar
and Range Rover.

Shares are getting a +5% lift on Wednesday, putting them within
striking distance of an all-time high. The gains are coming from a
Wall Street Journal
article that discussed recent price increases among Indian car
makers. The Indian middle class is growing at a rapid rate,
which should enable these car makers to start to sell more premium
vehicles, which carry higher profit margins.

Action to Take -->
Tata Motors doesn't have much of a following on Wall Street in
terms of analyst coverage. But this company is an excellent proxy
for the fast-growing Indian economy. India will see many bumps in
the road on the path to a larger economy, and its infrastructure
remains woefully inadequate, but a strong set of technical skills
has created a very capable, but low-cost workforce, and should pave
the way for impressive long-term
GDP
growth. Tata Motors is one of the few ways for American investors
to play this exciting market.

-- David Sterman
Staff Writer
StreetAuthority

Disclosure: Neither StreetAuthority, LLC nor the David Sterman
hold positions in any securities mentioned in this report.

Please note that once you make your selection, it will apply to all future visits to NASDAQ.com.
If, at any time, you are interested in reverting to our default settings, please select Default Setting above.

If you have any questions or encounter any issues in changing your default settings, please email isfeedback@nasdaq.com.

Please confirm your selection:

You have selected to change your default setting for the Quote Search. This will now be your default target page;
unless you change your configuration again, or you delete your
cookies. Are you sure you want to change your settings?